If the FDA signals a willingness to consider the drug for accelerated approval, based on the phase II data—which it was not willing to do in the fall—Sarepta shares could double from the current price of $24.20. The prevailing Street view is that the FDA will require a phase III trial before considering approval.
Sarepta is valued at $922 million. Eteplirsen could initially produce $500 million of annual revenue if approved. The potential size of the DMD drug market is much larger, since eteplirsen addresses a genetic mutation affecting about 13% of DMD sufferers. Drug companies with lucrative drugs for orphan diseases, including Alexion Pharmaceuticals (ALXN), often are valued at more than 10 times revenue.
I ran your numbers through my Cray computer (situated in the back shed down the
lane from my house), and it comes out $5 Billion, not $1.85 Billion----I ran the numbers
again and still came out at $5 Billion---Would it be possible for you to do
your calculations again----10 x 500 million just to see that my computer (Old Jenny) is still
functioning properly?---Thank you..